HomeMy WebLinkAboutOrd. No. 2011-1293 ORDINANCE NO. 2011 -1293
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF LAKE ELSINORE, CALIFORNIA, ELECTING TO
COMPLY WITH AND PARTICIPATE IN THE
ALTERNATIVE VOLUNTARY REDEVELOPMENT
PROGRAM CONTAINED IN PART 1.9 OF DIVISION 24 OF
THE CALIFORNIA HEALTH AND SAFETY CODE
WHEREAS, the Redevelopment Agency of the City of Lake Elsinore ( "Agency ")
is a community redevelopment agency organized and existing under the California
Community Redevelopment Law, Health and Safety Code Sections 33000, et seq.
( "CRL "), and has been authorized to transact business and exercise the powers of a
redevelopment agency pursuant to action of the City Counci! ( "City Council ") of the City
of Lake Elsinore ( "City "); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to
carry out the Redevelopment Plan for the Rancho Laguna Redevelopment Project No. I,
as amended, the Redevelopment Plan for Rancho Laguna Redevelopment Project No.
II, as amended, and the Redevelopment Plan for Rancho Laguna Redevelopment
Project No. III, as amended which were adopted by and through a series of ordinances
of the City Council of the City.
WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the Health and Safety Code
were added to the CRL by ABX1 26 and ABX1 27, which measures purport to become
effective immediately. ABX1 26 and ABX1 27, which are trailer bills to the 2011 -12
budget bills, were approved by both houses of the Legislature on June 15, 2011 and
signed by the Governor on June 28, 2011; and
WHEREAS, Part 1.85 of the CRL ( "Part 1.85 ") provides for the statewide
dissolution of all redevelopment agencies, including the Agency, as of October 1, 2011,
and provides that, thereafter, a successor agency shall administer the enforceable
obligations of the Agency and otherwise wind up the Agency's affairs, all subject to the
review and approval by an oversight committee; and
WHEREAS, Part 1.8 of the CRL ( "Part 1.8 ") provides for the restriction of
activities and authority of the Agency in the interim period prior to dissolution to certain
"enforceable obligations" and to actions required for the general winding up of affairs,
preservation of assets, and certain other goals delineated in Part 1.8; and
WHEREAS, the dissolution of the Agency would be detrimental to the health,
safety, and economic well -being of the residents of the City and cause irreparable harm
to the community, because, among other reasons, the redevelopment activities and
projects made possible, implemented, and funded by the Agency are highly significant
and of enduring benefit to the community and the City, and are a critical component of
its future; and
WHEREAS, Part 1.9 of the CRL ( "Part 1.9 ") provides that a redevelopment
agency may continue in operation if a city or county that includes a redevelopment
agency adopts an ordinance agreeing to comply with and participate in the Alternative
Voluntary Redevelopment Program established in Part 1.9 ( "Program "); and
WHEREAS, as a condition of the Agency's continued existence and operation of
its redevelopment agency, the City is required to make certain annual remittances to the
county auditor - controller pursuant to Chapter 3 of Part 1.9, beginning with a larger
upfront remittance for the 2011- 2012 fiscal year ( "First Remittance "), to be paid in two
equal installments on January 15, 2012 and May 15, 2012; and
WHEREAS, the City will have sufficient moneys and revenues to fund an amount
equal to the City's payment of the First Remittance and expects to have sufficient
moneys and revenues to fund the subsequent annual remittances required by Part 1.9;
and
WHEREAS, the City's needs are such that it can commit to spend the funds
received from the Agency pursuant to the Agreement to Transfer Tax Increment
(defined below) to finance activities within the Redevelopment Project that are related to
accomplishing the goals of the Redevelopment Project, including but not limited to
attraction and retention of a wide range of businesses, rehabilitation of deteriorated and
obsolete structures, development of housing, improvement of infrastructure and public
facilities, crime reduction, and blight elimination; and
WHEREAS, the City and Agency intend to execute an agreement pursuant to
CRL Section 34194.2, whereby the Agency shall make an initial transfer of a portion of
its tax increment to the City in an amount equal the First Remittance, and thereafter to
transfer amounts of tax increment equal to any subsequent remittance which the City is
required to make to the county auditor - controller pursuant to the City's participation in
the Program ( "Agreement to Transfer Tax Increment "); and
WHEREAS, the City is aware that the validity, passage, and applicability of ABX1
26 and ABX1 27 is the subject of a judicial challenge; and
WHEREAS, the City, by the adoption of this Ordinance, does not represent,
disclaim, or take any position whatsoever on the issue of the validity of ABX1 26 or
ABX1 27, but rather the City seeks to comply with the Constitution and laws of the State
of California, including Part 1.9, in order to preserve the ability of the Agency to continue
to operate and thereby benefit the community; and
WHEREAS, the City reserves the right to appeal the California Director of
Finance's determination of the Fiscal Year 2011 -12 community remittance, as provided
in Health and Safety Code Section 34194; and
WHEREAS, while the City currently intends to make these community
remittances, they shall be made under protest and without prejudice to the City's right to r..
recover such amounts and interest thereon, to the extent there is a final determination
that AB 1X 26 and AB 1X 27 are unconstitutional; and
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WHEREAS, the City reserves the right, regardless of any community remittance
made pursuant to this Ordinance, to challenge the legality of AB 1X 26 and AB 1X 27;
and
WHEREAS, to the extent a court of competent jurisdiction enjoins, restrains, or
grants a stay on the effectiveness of the Alternative Voluntary Redevelopment
Program's payment obligation of AB 1X 26 and AB 1X 27, the City shall not be obligated
to make any community remittance for the duration of such injunction, restraint, or stay;
and
WHEREAS, the City has duly considered all other related matters and has
determined that the City's participation in the Program is in the best interests of the City,
and the health, safety, and welfare of its residents, and in accord with the public
purposes and provisions of applicable state and local laws and requirements.
THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
ORDAINS AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The City hereby finds that (i) the dissolution of the Agency would be
detrimental and cause irreparable harm to the community and to the health, safety, and
economic well -being of the citizens of the City, and (ii) the types of activities and
projects made possible, implemented, and funded by the Agency are highly significant
and of enduring benefit to the community and the City, and are a critical component of
its future.
SECTION 3. The City hereby commits to spend those funds received under the
Agreement to Transfer Tax Increment or otherwise pursuant to CRL Section 34194.2 to
finance activities within the Redevelopment Project that are related to accomplishing the
goals of the Redevelopment Project.
SECTION 4. The City hereby ordains that the City shall comply with the
Constitution and the laws of the State of California, including Part 1.9, including the
making of the remittances referred to in CRL Section 34194(c) at the times and in the
manner described in Part 1.9. This ordinance is that ordinance referred to in CRL
Section 34193 and shall be interpreted and applied in all respects so as to comply with
Part 1.9, to the fullest extent permitted by law. .
SECTION 5. On or before November 1, 2011, the City Manager (or his designee)
is hereby authorized and directed to notify the county auditor - controller, the Controller of
the State, and the State Department of Finance that the City agrees to comply with the
provisions of Part 1.9 as provided under CRL Section 34193, such notice to be in
accordance with CRL Section 34193.1.
r SECTION 6. The City's remittances to the county auditor - controller made
pursuant to Part 1.9 may be paid from any legally available funds of the City not
otherwise obligated for other uses in accordance with CRL Section 34194.1. Nothing
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herein is intended or shall be interpreted to require any payments or impose any
financial or other obligation of the City other than in accordance with the Constitution
and laws of the State of California, including Part 1.9.
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SECTION 7. Except as set forth in Section 8, below, the City Council hereby
determines that the City shall make the community remittances set forth in CRL Section
34194, et seq.
SECTION 8. City shall not make any community remittance in the event a court
of competent jurisdiction either grants a stay on the enforcement of AB 1X 26 and AB
1X 27 or determines that AB 1X 26 and AB 1X 27 are unconstitutional and therefore
invalid, and all appeals therefrom are exhausted or unsuccessful, or time for filing an
appeal therefrom has lapsed. Any community remittance shall be made under protest
and without prejudice to the City's right to recover such amount and interest thereon in
the event that there is a final determination that AB 1X 26 and AB 1X 27 are
unconstitutional. If there is a final determination that AB 1X 26 and AB 1X 27 are
invalid, this Ordinance shall be deemed to be null and void and of no further force or
effect.
SECTION 9. If any provision, clause, sentence or paragraph of this Ordinance or
the application thereof to any person or circumstance shall be held invalid, such
invalidity shall not affect the other provisions of this Ordinance and are hereby declared
to be severable.
SECTION 10. This Ordinance shall take effect thirty (30) days after the date of
its final passage or such later date as may be designated by the City Council. The City
Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be
published and posted in the manner required by law.
PASSED, APPROVED, AND ADOPTED at a =•ular m -eting of the City Council
of the City of Lake Elsinore, California, on this 23 • •y of A ug t, • 1.
7'i : E' T MAGEE, �YOR PRO TEM
CITY OF LAKE E ORE
EST:
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CITY CL
APPROVED AS TO F' R'
BA' EIB!LD
CITY ATTORNEY
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STATE OF CALIFORNIA )
, r COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Virginia Bloom, City Clerk of the City of Lake Elsinore, California, hereby
certify that the foregoing Ordinance No. 2011 -1293 was introduced at a regular
meeting of the City Council of the City of Lake Elsinore on the 9 day of August
1 2011, and was approved and adopted at the regular meeting of the City Council
of the City of Lake Elsinore held on the 23 day of August, 2011 by the following
!, roll call vote:
AYES: Council Member Hickman, Council Member Tisdale, Council
Member Melendez and Mayor Pro Tem Magee:
NOES:
ABSENT:
ABSTAIN:
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